The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Feltham may extend the lease for a further ninety years under statute. Do give careful consideration before delaying your Feltham lease extension. Postponing that expense today simply increases the premium you will ultimately be required to pay to extend the lease.
Leasehold properties in Feltham with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancing solicitors that we work with handle Feltham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Jasper, came very near to the eighty-year threshold with the lease on his purpose- built apartment in Feltham. Having bought his property 19 years previously, the unexpired term was of minimal interest. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Jasper arranged for a lease extension at the eleventh hour last June. Jasper and the landlord eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have increased by at least £1,050.
In 2013 we were e-mailed by Dr Mollie Dupont who, having moved into a garden apartment in Feltham in June 2004. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar residencies in Feltham with 100 year plus lease were worth £227,800. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 28 June 2090. Given that there were 65 years outstanding we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.
An example of a Lease Extension decision for a Feltham property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The remaining number of years on the lease was 82.93 years.